INSTITUTIONAL FRAMEWORK FOR THE FORMATION AND DEVELOPMENT OF THE DIGITAL ECONOMY

Abstract

The article enhances the scientific provisions on understanding the nature of the digital economy and the logic of disclosing its essence through the use of institutional analysis methods and substantiates the relationship between the development of institutions and digital technologies. It is determined that the digital economy is an institutional system consisting of digital products and digital infrastructure, based on digital technologies, formed and developed on the basis of rules and norms (institutions) characteristic of the modern information society. The publication proves that the directions of institutional construction of the system are determined by the strategic goals of development of a particular society, and the development of the institutional system affects the efficiency of the economy. The research identifies parallel ways of forming an institutional system in order to meet the current level of technology: reforms of government bodies and traditions and customs (routines). The paper proves that the contradictions that arise in the period of a sharp breakdown of traditional institutions can be resolved only through the creation of an effective institutional system of a transformational society. Theoretical approaches to the digital economy are developed by clarifying the institutional foundations of the digital economy, which ensure the formation of civilised social relations in society, give an impetus to economic growth and improve the welfare of the population. The transformation of the institutional system on the basis of certain principles will be able to ensure the socio-economic development of society. The institutional foundations (principles) of the digital economy include the following: economic freedom of economic activity and consumer choice; assurance of inalienable rights and freedoms of the individual; creation of incentives for increasing the efficiency of social production through digitalisation; effective control over the observance of existing and new formal rules governing the relationship between the individual and society with the application of sanctions provided for by law to all violators; knowledge orientation; digital representation of objects; provision of an increase in the living standards of all social groups; virtualisation of production; access to digital information and communication; development of digital infrastructure (financial, educational, medical, governmental, logistics, etc.); improvement of digital products and diversification of their types; digital security; enhancement of competition and control of monopolies. The study determines that institutionalisation of the digital economy means transformation of the intentions of society and economic (implicit) entities to create a favourable environment (benefit) for exchange in the form of legal norms through economic and legal regulatory activities of real subjects of power.